Decision Making In Matrix Organizations
Leadership Workshop (5 of 12) – Manage Decisions Well
Leading at Light Speed is a powerful leadership book by Eric Douglas for businesses, public agencies, and nonprofits revealing the 10 Quantum Leaps to build trust, spark innovation, and create a high-performing organization.
Chapter Four is all about how to Manage Decisions Well.
Think of decisions as the quanta of organizational behavior, much as photons are the quanta of light. Many small decisions make up a larger process. In a matrix organization, many people take part in delivering a product or a service. However, specific components of the process as well as specific decisions still rest upon the shoulders of one person. The responsibility of the project budget is that of the team leader. Budget reports are the responsibility of the finance manager. It is the responsibility of the chief operating officer to assure that each team has the right balance of human resources. The responsibility of business development belongs to the CEO of the organization. They all need to be working together and communicating to assure decisions are coordinated.
Anxiety about functional roles and authority can result in distrust in a matrix organization. Power equals status. Authority equals status. A buildup of gossip and distrust runs rampant when people are oriented around functional roles and authority. To build trust, effective leaders keep the noise in check by focusing people on making good decisions – within the context of clearly defined roles and responsibilities. They target on conveying which decisions belong to each level. They clarify that the source of status stems from participation in decision-making. They make sure their employees have effective communication tools which function between the intersecting layers of authority and responsibility – as well as addressing any conflicts when they appear.
Of primary importance is their continuous referral of people back to the strategic focus for guidance in making their decisions. They make sure people ground their decisions in purpose, values and vision. The leaders of matrix organizations implement the necessary communication in order to build trusted relationships inter-departmentally. In-person communication can be expensive and time-consuming – and thus tempting targets to cut. Having worked in many matrix organizations, I can assure you that it’s a mistake not to make this investment. This may seem challenging – and it is. But if you stick to it, you’ll be building trust. And by doing so, you’ll discover your work becomes much easier. Whether you’re a global behemoth, a small start-up or anything in between, the only sure path to success is to be found by investing in trust-building.
Take this free work survey to see if your organization practices the 10 Quantum Leaps of high-performing organizations.